Democratic Budget Movement pushes for Tk6 lakh tax-free income limit

The Democratic Budget Movement and Oxfam, Bangladesh have called for increasing the tax-free income threshold for individuals to Tk6 lakh in the next fiscal year's budget.

At an event for analysing the upcoming budget today (29 May), economists and experts argued that current social safety programmes are insufficient to help people manage rising inflation. 

To address this, they urged the government to increase funding for social security programmes in the upcoming budget. Additionally, they recommended a guaranteed minimum of 100 workdays per year for the poorest individuals, with a daily wage of Tk500.

The Democratic Budget Movement and Oxfam, Bangladesh jointly hosted the event, comprising two sessions, at the Cirdap International Conference Centre in the capital, in partnership with the Safety and Rights Society, Participatory Research Action and Network, and The Earth.

The Democratic Budget Movement aims to educate citizens, taxpayers, and professionals about the national budget's structure and process, while Oxfam seeks to foster a vibrant and equitable society in Bangladesh.

In the first session, Professor MM Akash from Dhaka University's Economics Department said, "Inflation has been around 12% on average for the last two years, and under this pressure, the average income of people has decreased by about 24%."

"Meanwhile, money is concentrated in the hands of corrupt businessmen, bureaucrats, and politicians as well as being laundered. If laundering could be stopped, social security demands of ordinary people could be met," he said.

"In this situation, our tax-free income limit should be Tk6 lakh. At the same time, allocation in the social safety sector should be increased in the budget," Akash added.

Former lawmaker Barrister Shameem Haider Patwary said, "Budget management needs to be oriented towards public interest rather than bureaucratic and business interests. The country's current financial challenges stem from the absence of a democratic financial system within the government."

He also highlighted the potential to effectively manage the social security programmes by redirecting the funds currently allocated as capacity charges in the electricity sector.

During the second session, speakers advocated for transitioning to a green economy by reducing dependence on fossil fuels.

M Zakir Hossain Khan from Change Initiative, Rubaiya Nasrin Sejuti from Oxfam Bangladesh, and Md Mosleh Uddin Suchok from The Earth delivered speeches in his session.

They said the green economy catalyses greening employment. Without the creation of green jobs, the economy will continue to rely on dependency. 

They advocated for halting investments in fossil fuels while increasing investments in clean energy, providing incentives to encourage private investment in this sector.